September 13, 2018
By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-Umaru Ibrahim, the managing director and chief executive of the Nigeria Deposit Insurance Corporation (NDIC), on Wednesday advised banks in Nigeria to collaborate with regulators for the establishment of sound ethics and professionalism in the banking industry.
Ibrahim made the call during the courtesy visit by the executive members of the Chartered Institute of Bankers (CIBN) led by Uche Olowu, president and chairman of Council of the CIBN.
The NDIC CEO said in a statement on the Coprporation’s website that instances of abuse of extant regulations and ethical standards impacted negatively on the confidence in the banking industry and the entire financial system in general.
“The recent involvement of some deposit money banks in illegal forex transfers as a wake-up call for better corporate governance and ethical behaviour by the banks,” Ibrahim said.
He assured the CIBN president of his resolve to strengthen collaboration with the institute in the enforcement of good corporate governance among banks as well as the promotion of high ethical standards and professionalism.
According ti him, it was the primary responsibility of regulators to uphold strict compliance with international best practices and ethical standards in order to promote effective risk management and sound corporate governance in the banking industry. This is in line with the Corporation’s drive towards protecting depositors and enhancing public confidence in the financial system.
On his part, Olowu attested to the recognition of the NDIC Academy by the International Association of Deposit Insurers (IADI) as a world class institution in providing capacity building for the banking industry.
“This recognition and the CIBN’s active collaboration with the Corporation to entrench ethical standards is a key driver towards effective service delivery in the industry,” Olowu said.
The CIBN president emphasized the need to extend the collaborative efforts to joint research and knowledge-based events to enhance public awareness about the role of deposit insurance in financial system stability.
According to him, the active participation of the Corporation in the activities of the council as well as its role in the nation’s economic development informed the Council’s visit to formally invite the NDIC MD/CE as a special guest and resource person at the CIBN 11th Annual Banking and Finance Conference.